EPFO lists norms to opt for higher pension
While employers’ organisations welcomed the circular, trade unions said it was delayed beyond the date suggested by the top court and it will cause further inconvenience for pensioners as the deadline set to submit joint options will end on March 3.
Regional PF Commissioner (Pension) Aprajita Jaggi said in the circular that employees who did not exercise joint option as per paragraph 11(3) of the EPS “would be entitled to exercise joint option”. The employees and pensioners who had contributed to the EPS and did not exercise joint option for higher pension on actual salary prior to September 1, 2014 can now apply for enhanced pension. The employees and pensioners should give joint consent with the employer to the EPFO for adjustment from Provident Fund to Pension Fund and for any re-deposit to the fund.
“In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period,” she said.
“In case of employees of un-exempted establishments, refund of requisite employer’s share of contribution, the same shall be deposited with interest at the rate declared under Para 60 of the EPF Scheme, 1952, till the date of actual refund,” the circular said and added that the method of deposit and that of computation of pension will follow through subsequent circular.
Member of the Central Board of Trustees representing employers K.E. Raghunathan said the circular had simplified the process with clarity for seeking pension on higher wages. “This has put at rest all the other speculative expectations. We must appreciate the complexity and financial implications,” he said.